Solid Chinese export data for October was triggered by a surge in global demand ahead of last winter's holiday. This condition makes China's trade surplus increase.
China's National Bureau of Statistics recently released data on exports that increased 27.1 percent year-over-year in October.
Although slightly slower from 28.1 percent growth in the previous period, this export figure is still higher than the forecast for a 24.5 percent increase.
China's solid export growth in October was inseparable from a surge in global demand ahead of the winter holidays.
In addition, the easing of the electricity crisis and the smooth running of the supply chain also supported export performance throughout October.
Zhiwei Zhang, chief economist at Pinpoint Asset Management, said that strong exports would help cushion the domestic economic slowdown in the fourth quarter, and give the government greater room to maneuver in economic policy.
"The Chinese government can wait until the end of the year to ease monetary and fiscal policy, as now exports provide a buffer to cushion a potential economic slowdown," Zhang said in a note.
It should be noted that the Chinese government is planning to conduct monetary intervention following the contraction of manufacturing activity for two consecutive months.
In fact, China's industrial output growth fell to its lowest level since March 2020 (when the first wave of COVID-19 spread in China).
Meanwhile, China's annual import data recorded an increase of 20.6 percent in October, higher than the previous month's growth of 17.6 percent, but missed expectations of a 25 percent increase.
Imports of crude oil jumped from 34.9 to 56.3 percent, as well as the value of coal imports which skyrocketed 292 percent from the previous year.
The sharp spike in energy commodity prices in international markets underlies the swelling Chinese imports in recent months.
Solid export growth had a direct impact on China's trade balance data which posted a surplus of $84.54 billion in October, a multi-year record high.
Even so, China's trade surplus with the US as its main trading partner was only $40.75 billion, down from the previous month's surplus of $42 billion.
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